Indian autos stocks eye best week in four months spurred by lower tax rates

Ashok Leyland

05/09/2025 08:15

** Indian auto stocks .NIFTYAUTO rise 5.3% this week

** Fifteen-member Nifty Auto index set for best week since May 2025, led by Mahindra & Mahindra MAHM.NS

** Effective tax rate on SUVs drops to 50% from 45%-50% earlier due to removal of extra cess; Investec estimates the change would benefit 50% of MAHM's volumes

** On Friday, MAHM shares climb 2.25% to record 3,558 rupees

** Industry-wide car volume growth to return to 10% in the next 1-2 years as entry-level models become more affordable, BofA said in a note on Thursday

** Meanwhile, Eicher Motors EICH.NS second-best performer on index, up 7.4% this week as GST drop benefits 86% of its volumes

** YTD, Nifty Auto index's ~15% rise tops Nifty 50's .NSEI 4.3% climb

 (Reporting by Urvi Dugar)

 ((UrviManoj.Dugar@thomsonreuters.com))